The opening of the European session market saw the pound slump to a nearly three -week low following political uncertainty in the UK that led to Prime Minister Boris Johnson nearly sacked.
In a move that was initially considered a rumor, Conservative or Tory lawmakers have proposed a proposal to hold a vote of confidence on PM Johnson on Monday.
However, Boris Johnson was lucky after a majority of his lawmakers still supported him, with 59% in favor of him while another 41% opposed.
Yet, looking at the number of members who cast their votes, this shows that PM Johnson’s leadership is like an egg at the tip of a horn.
Meanwhile, the rise of the Aussie dollar following the Australian Central Bank’s (RBA) surprise decision to raise rates higher than expected, continued to be limited due to the stronger US dollar.
The RBA raised interest rates by 50 basis points to 0.85%, falling short of market expectations for a rise of just 25 basis points.
The US dollar continued to strengthen supported by investor confidence for the Federal Reserve (Fed) to continue its aggressive move in tightening its monetary policy after seeing strong NFP data.
Meanwhile, the euro capped its decline amid investors' hawkish expectations ahead of the European Central Bank's (ECB) policy meeting on Wednesday.
